You hired your workforce, trained them, and rewarded them a salary that aligns with their skill set and experience. Although most construction employers do their best to comply with federal laws related to minimum wage and overtime pay, you may not be compensating your employees the total amount they are lawfully owed.
In this article, a Brandon construction attorney will discuss laws related to overtime exemptions under the Fair Labor Standards Act (FLSA). If your jobsite is in violation of federal wage and hour laws, you could be headed towards a Department of Labor hearing.
Overtime Exemptions Laws
Contractors and site managers need to closely track the time each one of their workers is “on the clock.” The FLSA requires employers to pay their employees the federal total for minimum wage of $7.25. If the state minimum wage is greater than the federal amount, like $8.46 in the State of Florida, employers must pay this prevailing total. Employers also are lawfully required to compensate nonexempt employees at a rate of one and one-half times their regular hourly pay rate for every hour they work over forty in a workweek.
Although there is a law in place to protect workers who aren’t compensated for overtime, there are some employees that are exempt from overtime laws. Specifically, under Section 13(a), these employees are “bona fide executive, administrative, professional and outside sales employees.” There are also exemptions for certain computer and creative professionals. In order to qualify for an exemption, the employee has to perform job duties related to any of the above positions and also earn a salary of at least $455 per week.
What About Construction Laborers?
As you can see from the above criteria, the job tasks of exempt employees don’t align with the vast majority of professionals in construction. For example, manual laborers are an example of non-management workers that are entitled to overtime pay. Other examples of non-management employees that are owed overtime include electricians, carpenters, plumbers, and other construction professionals.
Construction firms need a reliable recordkeeping system in place. They also need to understand how to classify the employment status of each employee. Worker misclassification or failing to compensate your workers overtime can lead to serious Department of Labor (DOL) compliance issues. If the DOL has contacted your jobsite, consult an experienced Brandon construction lawyer.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.